Twenty million dollars in taxpayer money will go to subsidize horse racing in New Jersey this year as part of an effort by state policymakers to retain jobs and make the industry more competitive with tracks in neighboring states.

Another $20 million could flow to the industry each of the next four years under a bipartisan bill Gov. Phil Murphy signed into law on Thursday, even as the state’s latest revenue report shows New Jersey falling behind its tax collection goals for the year, which could force midyear cuts in spending.

“New Jersey’s horse racing industry is a key economic engine, supporting thousands of jobs and attracting tourists and fans from around the world,” Murphy, a Democrat, said in a statement.

“Our state has a long and proud history of horse racing and we must recapture our competitive edge in the industry,” he said. “With this funding, New Jersey can continue to offer one of the most exciting horse racing experiences in the nation, while also providing a boost to an industry that is integral to our economy.”

But critics such as Erica Jedynak, state director of the conservative advocacy organization Americans For Prosperity, took a different view of the situation. Jedynak said it was an "insult" to taxpayers for Murphy to approve up to $100 million in subsidies when New Jersey's pension system is among the worst-funded in the nation and state debt continues to pile up.

"Where is the bailout for the average resident breaking under the state’s high taxes and unaffordability?" Jedynak said in an email.

She also said it was "counterintuitive" for Murphy to back the subsidies at the same time he is fighting to scale back the state's corporate tax incentive programs. Murphy has said the existing programs, which were approved under prior administrations and have awarded $11 billion in tax breaks, are too generous to big businesses and that they crowd out investment in more pressing priorities, like infrastructure and education.

The money allocated under the new law will go toward enhancing the winnings, or purses, paid out to the highest finishers at races. In general, higher purses means tracks can attract more horses, which in turn leads to more wagering by spectators and more business for the tracks and ancillary workers.

Monmouth Park, the state’s only thoroughbred track, will receive $10 million for purses in the current fiscal year, which ends June 30, with the Meadowlands Racetrack and Freehold Raceway, both standardbred tracks, getting $6 million and $1.6 million, respectively. The remaining $2.4 million will go toward breeding programs and other purses.

Tracks must submit an annual report showing the impact of the subsidies on wagering, attendance, field size and revenue. In future years, lawmakers can decide not to allocate all or a portion of the $20 million in annual payments if they determine past payments have not "substantially improved" the state's horse racing industry.

The racing industry used to receive a $30 million annual supplement from Atlantic City's casinos provided the tracks did not pursue the addition of slot machines in their grandstands. But Christie eliminated the subsidy in 2011 when he privatized Monmouth Park and the Meadowlands track.

The operators of New Jersey’s tracks say the state subsidies are modest compared to those in neighboring states. Jeff Gural, the operator of the Meadowlands track, has said that Pennsylvania gives $250 million annually from slot machine earnings to its tracks, while New York provides $200 million a year in purse subsidies.

Support for the taxpayer-funded subsidies came from members of both political parties, who emphasized the jobs and open space supported by the industry.

“New Jersey’s horse racing industry has created tens of thousands of in-state jobs and has led to the preservation of more than 175,000 acres of farmland and open space,” state Sen. Steven Oroho, R-Sussex, said in a statement. “The entire Garden State will benefit from the economic activity and revenue generated as a result of this bipartisan effort.”

The subsidies are the second financial boost for New Jersey’s horse racing industry in recent months after the state legalized sports betting last year, allowing racetracks to set up sports books.